Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or
Standard; Transfer of Listing
On June 24, 2022, Nova LifeStyle, Inc. (the "Company") received a letter from
the Nasdaq Stock Market ("Nasdaq") notifying the Company that, because the
closing bid price for the Company's common stock listed on Nasdaq was below
$1.00 for 30 consecutive trading days, the Company no longer meets the minimum
bid price requirement for continued listing on Nasdaq under Nasdaq Marketplace
Rule 5550(a)(2), which requires a minimum bid price of $1.00 per share (the
"Minimum Bid Price Requirement").
The notification has no immediate effect on the listing of the Company's common
stock. In accordance with Nasdaq Marketplace Rule 5810(c)(3)(A), the Company has
a period of 180 calendar days from the date of notification, until December 21,
2022 (the "Compliance Period"), to regain compliance with the Minimum Bid Price
Requirement. If at any time before the expiration of the Compliance Period the
bid price of the Company's common stock closes at or above $1.00 per share for a
minimum of 10 consecutive business days, Nasdaq will provide written
notification that the Company has achieved compliance with the Minimum Bid Price
Requirement. If the Company does not regain compliance by the end of the
Compliance Period, the Company may be eligible for an additional 180 calendar
day period to regain compliance. To qualify, the Company will be required to
meet the continued listing requirement for market value of publicly held shares
and all other initial listing standards for The Nasdaq Capital Market, with the
exception of the bid price requirement, and will need to provide written notice
of its intention to cure the deficiency during the second compliance period by
effecting a reverse stock split, if necessary. However, if it appears to Nasdaq
that the Company will not be able to cure the deficiency, or if the Company is
otherwise not eligible, Nasdaq will provide notice that the Company's securities
will be subject to delisting.
The Company intends to continue actively monitoring the bid price for its common
stock between now and the expiration of the Compliance Period and will consider
all available options to resolve the deficiency and regain compliance with the
Minimum Bid Price Requirement.
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